Business Plan for Small Business: How to Write One

A business plan for a small business covers the business, customers and market, offer, marketing and sales, operations and team, and finances. Write it customer first and the summary last, and keep each section to a few clear lines.

What to include in a business plan for a small business

Most small business plans use the same eight sections. Each one answers a single question.

• Executive summary: What is the business, who is it for, and what do you need? Write it last, in a few sentences.
• Business description: What do you sell, and where and how do you operate?
• Customers and market: Who buys, what problem do they have, and how big is the group you can reach?
• Offer and competitors: What do customers get, what do they use today, and why would they switch?
• Marketing and sales: How will customers find you, and how does interest turn into a sale?
• Operations and team: Who does the work, with which tools, suppliers and location?
• Financial plan: What does it cost to start and run, what will you charge, and when does the business pay for itself?
• Funding request: How much do you need and what is it for? Include this only if you are borrowing or raising money.

Draft the customer, offer and marketing sections with FounderPal

The customer, offer, competitor and marketing sections are where most owners get stuck. [FounderPal](/) has a free Business Plan Generator that drafts them from a short description.

1. Open the Business Plan Generator.
2. Fill in Business description and Target audience, and choose the Language.
3. Click Generate for FREE.
4. Read the ten outputs: Segment, Problem, Transformation, Differentiation, Nemesis, Competitors, Activation, Pricing, Traction and Scale.
5. Edit each one so it matches what you know about your customers.

Then place the outputs in your plan:

• Segment and Problem go into customers and market.
• Transformation and Differentiation go into the offer.
• Nemesis and Competitors go into the market and competitor section.
• Activation, Traction and Scale go into marketing and sales.
• Pricing is a starting point for the financial plan.

The generator does not write operations, team or financial projections. Those come from your own costs, suppliers and numbers. To compare how finished plans are structured, browse the business plan examples. For the wider picture, see AI for business planning.

How to write a business plan step by step

Work in this order. It is faster than starting at the summary.

1. Customers. Describe one group of buyers and the situation that brings them to you. A specific group is easier to market to than "everyone".
2. Offer and competitors. State what customers get and what they do today instead, including doing nothing. Say in one line why yours is better for this group.
3. Marketing and sales. Pick two or three channels you can keep up, and name the action you want each visitor to take. The marketing section of a business plan covers this part in detail.
4. Operations and team. List who does the work, the tools and suppliers you need, and any licences or insurance your trade requires.
5. Finances. List startup costs, monthly running costs, your price and expected sales. Label every estimate as an estimate, and show how you got it.
6. Summary. Write it last, in a few sentences drawn from the sections above.

To size the market for the customers section, use the market size calculator.

What lenders and investors look for

Lenders want to know how you will repay. Give realistic startup costs, how much you need and what it is for, expected cash flow, how much you are putting in yourself, and what you can pledge as security.

Investors want a reason to believe the business can grow. Show the size of the opportunity, why this customer and this offer, early signs of demand, and how new money will speed up growth.

Both read the financial section first and check it against the rest of the plan. If your price, your customer count and your marketing plan do not fit together, say so and fix it before you share the plan.

One page business plan outline

Copy this outline and answer each question in a line or two. It works as a short plan on its own, or as the skeleton for a longer one.

• Summary: What is the business, who is it for, and what do you need?
• Business: What do you sell, and how do you operate?
• Customers and market: Who buys, and what problem do they have?
• Offer and competitors: What do customers get, and why choose you over what they use today?
• Marketing and sales: How do customers find you, and how do you close the sale?
• Operations and team: Who does the work, and with what?
• Finances: What are your costs, price and expected sales?
• Funding request: How much do you need, and what is it for?

For the short version, read how to write a one page business plan. For the marketing follow-up, see the small business marketing plan guide.

FAQ

What should a business plan for a small business include?

Include an executive summary, business description, customers and market, offer and competitors, marketing and sales, operations and team, and a financial plan. Add a funding request if you are borrowing or raising money.

How long should a small business plan be?

Long enough to cover each section and no longer. A plan for your own use can be a page or two. A plan for a lender or investor is fuller, mainly in the financial section.

Do I need a business plan if I am not seeking funding?

It is not required, but writing one shows gaps in your customer, pricing and costs before you spend money. A short plan is enough, and you can expand it later if you decide to raise funds.

Can FounderPal write my whole business plan?

No. The Business Plan Generator creates ten marketing decisions from your business description and target audience. You add operations, team and financial projections yourself.